Well said. The plant at full capacity would produce 24M EBITDA that is nothing for big companies and they would not even consider buying it based on plant and assets. It is all about intellectual property. The company that is buying BioAmber assets may be fully aware that they will have to invest another billion to realize full potential of all of its assets i.e building plant that ten times size of current Sarnia plant to produce large amounts of succinic acid and BDO and THF which would generate huge income streams in 2-3 years that is 5-10 billion dollars. Big companies invest for future and they know the value of BioAmber just ask JF Huc prior CEO of BioAmber and now VP of business development for Greenfield why they are bidding.
By acquiring BioAmber assets, big companies will get access to three products that can be manufactured at commercial levels with significant cost savings that will enable to gain market share.
The first one is manufacturing of Succinic acid which is 2B market globally and growing at 20% so in 5 years it will be 4B.
The second one is manufacturing of Butandiol and Tetrahydroflurene with the help of Succinic acid instead of petrochemicals. This is another 6-8 Billion market.
The third one is manufacturing of Adipic acid with help of yeast they got from Cargill. This is another 7 Billion market.
The fourth one is Succinic acid as replacement product for Adipic acid.
This is 20 Billion market in 5 years from now for all products.
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